South Africa Central Bank Warns It Must Act on Rising Inflation Expectations After 7% Rate Hike
Updated
Updated · Bloomberg · Jun 20
South Africa Central Bank Warns It Must Act on Rising Inflation Expectations After 7% Rate Hike
2 articles · Updated · Bloomberg · Jun 20
Summary
Governor Lesetja Kganyago said South Africa’s central bank is seeing early signs of second-round inflation effects, making action necessary as underlying price pressures build.
A 25-basis-point increase in May lifted the policy rate to 7%, the first hike in three years, but Kganyago said policymakers did not yet have the latest inflation-expectations data at that meeting.
Rising inflation expectations now appear to be a key concern for the bank, suggesting officials are weighing whether earlier tightening was enough to contain broader price pressures.